Thryv's Q1 2025: Contradicting Strategies on Customer Retention, Macroeconomic Impacts, and SaaS Growth

Focus on customer acquisition vs. retention, impact of macroeconomic factors on customer behavior, customer retention and churn rates, SaaS revenue growth and focus, and customer behavior in challenging economic conditions are the key contradictions discussed in Thryv Holdings, Inc.'s latest 2025Q1 earnings call.



Strong Revenue and SaaS Growth:
- Thryv reported 50% year-over-year revenue growth for Q1 2025, with SaaS revenue comprising 61% of total revenue.
- The growth was driven by a strategic focus on transitioning from marketing services to SaaS products and acquiring Keap, which contributed $18.9 million in Q1.

Customer Growth and Retention:
- Thryv's subscriber growth was 37%, bringing the total to 96,000, including 111,000 with Keap subscribers.
- The increase in subscribers was due to successful cross-selling and upgrades from marketing services clients, and retention was high with a recorded 103% net revenue retention.

Product and Partner Integration:
- Thryv's combined partner conference with Keap attracted more than 100 partners, who expressed interest in selling the full Thryv product catalog.
- The integration of Keap's automation capabilities with Thryv's top-of-funnel solutions was seen as beneficial, with partner feedback indicating high demand for these combined offerings.

Guided Revenue Expansion:
- The company expects full-year SaaS revenue to be in the range of $460.5 million to $471 million, with a SaaS adjusted EBITDA margin target of 15%.
- This outlook reflects a strategic focus on growing the SaaS customer base and expanding existing customer spend through upselling and cross-selling initiatives.